A remedy in compliance with this chapter shall not be contingent on the execution of any release other than the following Standardized SBA Release: Standardized SBA Release Release as it relates to settlements: The parties have previously agreed to settle the case as follows and hereby memorialize all terms of their settlement as follows: 1. Within 60 days from the date of receipt of the notice requesting restitution or replacement of the Subject Vehicle [Vehicle Year/Make/Model and VIN] (hereinafter "Subject Vehicle"), [Manufacturer] (hereinafter "Defendant") will make the following payments: a. Defendant shall pay the remaining loan balance or lease balance and residual value on the Subject Vehicle directly to the lienholder [Lender Name] in the amount necessary to relieve Plaintiff of all obligations related to Plaintiff's purchase or lease of the Subject Vehicle, excluding any late fees or penalties in the amount of [Loan Payoff Amount]. Said payment shall include interest through the date of payoff. This payment shall be expedited to the lienholder following completion of the return of the Subject Vehicle to the manufacturer or its agents. b. Defendant shall pay to [Plaintiff's Full Name] (hereinafter "Plaintiff") a total amount of [Restitution Amount] in a check payable to Plaintiff. This payment shall be provided to Plaintiff at the time of the return of the Subject Vehicle to the manufacturer or its agents. In the event Plaintiff makes an additional payment that is not included in the above amount, Defendant shall reimburse Plaintiff for any payments made according to proof, with the exception of any late fees, within 30 days from the date proof of payment is provided to Defendant. c. [If applicable] Defendant shall pay civil penalties in the amount of [Civil Penalties Amount] in a check payable to [Plaintiff, if not represented by counsel, or Name of Law Firm/Attorney, if Plaintiff is represented by counsel]. This payment shall be expedited following completion of the return of the Subject Vehicle to the manufacturer or its agents. d. Defendant shall pay to Plaintiff's counsel, if Plaintiff was represented by counsel (select one option below):
§ 871.25.Standardized Sba Release
Title 10. Actions In Particular Cases · Chapter 12. Actions for Restitution for or Replacement of Certain Motor Vehicles · Enacted 1755 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 871.25 bars conditioning any Chapter 12 remedy on a release other than the chapter's own Standardized SBA Release, a fixed settlement template covering payoff, restitution, civil penalties, attorney's fees, and dismissal terms.
Full Text of § 871.25
(i) In the event there is an agreement as to attorney's fees and costs, a check in the amount of [Attorney's Fees and Costs] payable to [Name of Law Firm/Attorney] shall be provided to Plaintiff's counsel. This agreed upon payment shall be expedited to the attorney following completion of the return of the Subject Vehicle to the manufacturer or its agents.
(ii) In the event the matter is resolved before the filing of a lawsuit and the parties cannot agree as to the amount of attorney's fees, costs, and expenses, then reasonable attorneys' fees, costs, and expenses shall be determined by neutral, binding arbitration.
(iii) In the event the matter is resolved after the filing of a lawsuit and the parties cannot agree as to the amount of attorney's fees, costs, and expenses, then reasonable attorneys' fees, costs, and expenses pursuant to subdivision (d) of Section 1794 of the Civil Code shall be determined by the court by way of a noticed motion. Defendant agrees Plaintiff is the prevailing party for purposes of said fee motion. 2. Before transfer of the settlement funds set forth in Paragraph 1 above, Plaintiff shall execute all documents necessary for the transfer of ownership of the Subject Vehicle to Defendant or its designee. 3. The payments described above are intended as a compromise resolution of [Plaintiff's Full Name] and [Defendant] with respect to all claims relating to the purchase, lease, condition, use, or repair of the Subject Vehicle during Plaintiff's purchase or possession of the Subject Vehicle. In signing this agreement, Plaintiff hereby releases [Defendant] from all claims relating to the purchase, lease, condition, use, or repair of the Subject Vehicle that arose during Plaintiff's purchase or possession of the Subject Vehicle, including, but not limited to, all claims under Sections 1793.2, 1793.22, and 1794 of the Civil Code. All releases are to take effect once Plaintiff returns the Subject Vehicle to Defendant. 4. [If the case has gone to litigation insert this Paragraph 4] The Parties to this release agree that the court shall retain jurisdiction pursuant to Section 664.6 of the Code of Civil Procedure to enforce its terms. In the event of a breach of this agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and costs incurred in the enforcement of this agreement. Within five business days of all of the above payments clearing, Plaintiff will file a Request for Dismissal with prejudice of [Plaintiff(s) v Defendant(s); Case Number/County] with the court. (signature of Plaintiff)(date) (signature of Defendant)(date)
Plain-English Summary
Settlement releases in lemon law cases can sometimes be used to demand more from a consumer than the underlying claim requires. Section 871.25 forecloses that by requiring one, and only one, release form: a remedy that complies with this chapter can't be made contingent on executing any release other than the Standardized SBA Release the section itself sets out in full.
That release template covers the mechanics a completed settlement needs: paying off any remaining loan or lease balance directly to the lienholder, paying the agreed restitution amount to the consumer, paying civil penalties where applicable, resolving attorney's fees either by agreement or through neutral binding arbitration, transferring title of the vehicle, and confirming that the parties intend the settlement to resolve all claims relating to the vehicle's purchase, lease, condition, use, or repair. Where a lawsuit has already been filed, the template also lets the court retain jurisdiction under § 664.6 to enforce the settlement's terms.
Because the release form is fixed, a manufacturer can't hold a settlement hostage to broader or different release language than the statute allows -- and a consumer, in turn, knows what they are signing away and what they are not.
Frequently Asked Questions
Can a manufacturer require a broader release than what this chapter provides?
No. Section 871.25 requires the exact Standardized SBA Release set out in the statute; a remedy under this chapter can't be conditioned on any other release.
What does the Standardized SBA Release cover?
Payoff of the loan or lease balance, the restitution payment, civil penalties where applicable, resolution of attorney's fees, transfer of the vehicle's title, and a release of claims relating to the vehicle's purchase, lease, condition, use, or repair.
Can the court still enforce the settlement after the case is dismissed?
When a lawsuit has been filed, the release template lets the court retain jurisdiction under § 664.6 to enforce the settlement.
Amendment History
Added by Stats 2024 ch 938 (AB 1755),s 1, eff. 1/1/2025.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: standardized sba release lemon law californialemon law settlement release form